Gorenje to Increase Sales, Market Share Nov 2, 2004 Slovenian-based appliance maker Gorenje said it is optimistic about its sales for this year, hoping to outperform its major rivals.
Gorenje CEO Franjo Bobinac said that competition got fiercer this year, the U.S. dollar slipped, and sales are increasingly concentrated on Europe, while oil and raw material prices have soared.
Gorenje, as well as its competitors, are therefore facing extensive problems and some of the biggest rivals have issued profit warnings. Moreover, the markets have not recovered yet, especially Germany. Despite this, Gorenje is pleased and has beefed up market shares.
The company also announced a new line of washing and drying machines. According to Mr. Bobinac, Gorenje might have overtaken the competition in several fields with the new products. The appliances are equipped with sensors and thereby save energy, water, and detergents.
Mr. Bobinac noted that household appliances remain the company’s core activity, as it generates 80 percent of the company’s total sales. Since this is a mature market, cost cutting and innovation are the keys to success, he said.
Gorenje said it plans to sell 165,000 appliances in Slovenia this year, taking a 60 percent market share. Worldwide, it said it expects to sell 3 million appliances this year. The company currently exports 93 percent of its output and has a 4 percent market share in Europe. (Slovenia Business Week)
